Vol. 10 No. 12 December 2006 - · PDF fileVol. 10 No. 12 December 2006 ... system, including Nokia NetAct Traffica, will support the network; Nokia will also provide network planning,

Vol. 10 No. 12 December 2006

Asia Pacific Telecom Newsletter is published monthly by Information Gatekeepers Inc.

320 Washington St., Brighton, Massachusetts 02135, USA. Fax: (617) 782-5735. Editorial telephone: (617) 782-5033.Circulation telephone: (617) 782-5033. (800) 323-1088 (Outside MA)Publisher: Dr. Paul Polishuk Editor: Dr. Hui Pan Managing Editor: Bev WilsonCirculation Mgr: Jaime Perez Subscription rates: $695 per year U.S. and Canada; $745 per year elsewhere.Discounts available for multiple subscriptions.© Information Gatekeepers Inc. 2006. All rights reserved. (ISSN 1097-8283)No part of this publication may be reproduced, stored in a data base or transmitted without prior written permission of the publisher.For photocopying authorization, contact Copyright Clearance Center, 222 Rosewood Dr., Danvers, MA 01923, Tel: (978) 750-8400.

In This Issue...

ACROSS THE REGION

Redknee to expand partnership with Digicel PacificRedknee plans to expand its partnership with Digicel

Pacific in the South Pacific, and with a sister firm to Digicel

2005 2006 2007 2008 20090

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Asia-Pacific VoIP service revenue($ billions)

Source: Infonetics Research

PowerTel launcheswholesale ASDL2+ servicesin Australia..................... 2

ShinSat to bid to acquirelicense for mobile-phoneservice in Bhutan........... 3

China Netcom to switchfrom H.264 to AVS forIPTV .............................. 4

Huawei unveils commercialIMS VCC solution .......... 5

Indonesia’s Telkom to takepart in fiber-optic tendervalued at $1.5 billion ..... 6

Five years after its launch,W-CDMA becomes leadingtechnology in Japan ...... 7

NEC, Juniper to extend theirNGN partnership ........... 8

Hanaro agrees to acquireOnse broadband subs ... 9

Copyright 2006 Information Gatekeepers Inc. 320 Washington St. Brighton, MA 02135 Tel: (617) 782-5033 Web: www.igigroup.com

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Asia Pacific Telecom Newsletter December 2006

Group in Central America and the Caribbean.Digicel Samoa will use Redknee solutions tooffer wireless services in Samoa.

Digicel uses the Redknee TurnkeyConverged Billing Solutions, IP ChargingSolution, Enhanced Messaging Gateway, andUSSD Gateway to offer prepaid and postpaidservices to mobile users in over 20 markets inCentral America and the Caribbean.

Lucas Skoszkowski, CEO of Redknee,said that the Pacific Region presented goodopportunities to Digicel and the company wouldlook forward to replicating the success achievedbuy its sister company in the Caribbean.

AUSTRALIA

PowerTel launches wholesale ASDL2+services in Australia

Australian operator PowerTel hasunveiled wholesale ASDL2+ services andfinalized the deal to offer connections toWestnet, an ISP based in Perth.

PowerTel’s ASDL2+ network uses theextensive ASDL2+ network created by its ISPpartner iiNet. PowerTel had taken a 14.9 percentstake in iiNet earlier this year. Fixed-linecompany Telstra is also likely to launch ASDL2+services very soon.

Telstra CE announces expectations ofgrowth in earnings in H2 of 2006-07

Sol Trujillo, chief executive of Telstra, saidat the company’s Melbourne AGM that thecompany expected to increase earnings in thesecond half of 2006-07.

EBIT were expected to fall by 17-20percent in the first half and rise by 37-40 percentin the second half. The company is in the secondyear of its five-year revamp exercise. Last week,the company started high-speed broadbandservices but complained that regulatoryrestraints from the Australian Competition andConsumer commission restricted it to existingcompetitive services.

In October, the company had predicteda 2 percent to 2.5 percent growth in EBITDA forthe period up to 2009-10. The annual EBITDAis now expected at 46 percent to 48 percent,compared to the previous estimate of 50 percentto 52 percent.

Hutchison introduces cheap mobile datamodem in Australia

Hutchison has unveiled the first everexpress-card format mobile data modem inAustralia. Though Hutchison is offering its dataplans with 2 Gigabytes at an attractive rate of$69 per month, a full-quota usage outside its3G network could force users to pay above$3,000. Hutchison is offering three plans for its3G services: $29 a month for 200 Megabytes,$49 a month for 1 Gigabyte, and $69 a monthfor 2 Gigabytes. However, excess data and datafor uploading and downloading would cost $1.65per Megabyte. Hutchison offers 3G in bigcenters on the network shared by Telstra. It hasroaming access to Telstra’s GSM/GPRSnetwork outside those areas. Thus, if the modemis not able to connect with a 3G base station inthe coverage area, the rate of $1.65 perMegabyte will apply. But a Hutchisonspokesman clarified that the card would haveLEDs to indicate its communication mode andcould be configured to operate on the 3Gnetwork only.

BigAir to offer broadband speeds almost 50times faster than ADSL2+

BigAir Limited intends to increase itsbroadband presence in Australia, amid thedifferences between telecom giant Telstra andthe Australian regulator. Over the next year,BigAir would offer its next-generation wirelessbroadband services with symmetric speeds ofaround 1Gbps, which is 50 times speedier thanthe highest download speed, and around 1,000times speedier than the standard upload speedon ADSL2+. The firm also intends to buildanother 10 wireless base stations over the next


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year to meet the increasing needs of itsbusiness-grade broadband services. BigAir’sannualized revenue reached $9.5 million,compared to the previous full year’s result of$6.9 million.

Internode launches ASDL2+ Annex-Mservices in Australia

Australia-based ISP Internode haslaunched ADSL2+ Annex-M services. It offersbroadband upload speeds of around 2.5Mbps.Internode started the trial of Annex-M throughDigital Subscriber Line Access Multiplexer(DSLAM) technology in July. It is now offeringthe service without extra cost to its SOHO andBusiness clients on supported exchanges.Internode does not intend to provide this serviceto residential users.

Telstra International launches Asia’s firstenterprise VoIP solution with distinctiveclasses of service

Telstra International (Telstra) announcedthe launch of “Global Voice over IP” (GlobalVoIP), marking its strategic move to provide IPtelephony (IPT) and voice services toenterprises beyond the Australian market.Telstra’s Global VoIP is based on an award-winning next-generation network (NGN) andcustomer premises equipment (CPE), while itsthree voice Classes of Service (CoS) andimbedded IP monitoring systems sets a newindustry standard for terminating IP-originatedvoice traffic, maintaining quality and networksecurity.

Telstra’s Global VoIP can lowertermination costs by over 50 percent comparedto traditional telephone services, while savingongoing maintenance and operational costsassociated with traditional PBX systems. Whilecost-savings is one key driver for IPT adoption,companies are also now using IPT and VoIP askey communication tools to improve businessresiliencies, increase team collaboration, andenhance communication needs.

BANGLADESH

Ericsson signs four-year deal with WaridTelecom

Ericsson has signed a four-year contractwith Bangladesh-based Warid Telecom formanaged services like rolling out the operator’sGSM/GPRS in Dhaka and a network expansion.Earlier this year, Ericsson signed two deals tosupply Mobile Softswitch, backbonetransmission equipment, and packet core forWarid Telecom’s GSM/GPRS network in variousparts of the country. Ericsson will be responsiblefor the designing, operations, rollout,management, and maintenance of theBangladeshi operator’s network.

BHUTAN

ShinSat to bid to acquire license for mobile-phone service in Bhutan

Thailand-based ShinSat is one of the fourcompanies that will bid for a license for a privatemobile-phone service in Bhutan. The officialsof the Bhutan Infocom and Media Authority(BIMA) seem to suggest that the auction will takeplace in December. Bhutan had reportedlyinvited AIS, Thailand’s biggest cell-phoneoperator, to take part in the bid, but Shinassigned the deal to ShinSat. Shin is the parentcompany of AIS. Three of the four short-listedfirms are joint ventures. BIMA has categoricallystated that the Bhutanese partner of any suchjoint venture must hold a share of at least 51percent. The winner of the 15-year license willneed to pay 25 percent of it straightaway; theremainder can be paid throughout the operatingtenure.

CAMBODIA

Samart looking to acquire major stakes intwo or three companies by this year’s end

Samart Corporation is planning toacquire major stakes in two or three telecom


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firms by the end of this year. Samart will alsobid for its second power plant in Cambodia. Ifapproved by the Cambodian government, theproject would warrant an investment of $273million. Samart announced its new subsidiary,Vision and Security System Co., to address therequirement for Internet Protocol-based securitysystems. Samart is likely to earn consolidatedrevenue of $820 million this year, compared tothe forecast $684 million. For the first ninemonths, the company earned $656 millionconsolidated revenue. The company aims toearn $13.7 million in 2007, $21.9 million in 2008,and $32 million in 2009. Its consolidated nine-month net profit was $49 million on revenue of$667 million.

CHINA

Nokia signs contract with ChineseGuangdong MCC on GPRS packet corenetwork expansion

Nokia has announced the signing of aGPRS packet core network expansion contractwith Guangdong MCC Ltd., which will makeNokia the leading GPRS provider for thecompany. As per the terms of the contract, Nokiawill provide its intelligent GPRS packet coresolution for the eighth GPRS expansion ofGuangdong MCC.

The core solution consists of SGSN,Nokia Flexi Intelligent Service Node, and NokiaCharging Gateway. The solution also supportsthe high-tech content charging functionality andprovides an easy migration path to Nokia CombiSGSN, as the 3G access support capability canbe obtained with simple memory and interfaceupgrades.

The multivendor, multitechnology NokiaNetAct network and service managementsystem, including Nokia NetAct Traffica, willsupport the network; Nokia will also providenetwork planning, implementation, andintegration services. The network will be servingmore than 11 million data subscribers in the

Eastern Guangdong province ranging fromShenzhen to include DongGuan and Huizhouby December 2006.

Nokia and Guangdong ProvincialGovernment signed a MoU in October 2006 inFinland, which names Nokia as an importantplayer in the information industry developmentof Guangdong province.

Number of fixed-line users in China reaches370 million

China’s Ministry of Information Industrystated that the number of landline users in Chinahad reached 370 million. The nation’s mobile-phone base reached 440 million, taking theoverall telephone volume to over 800 million.The MII also said that the Chinese telecomindustry grew from July to September.Revenues from the postal and telecom businessreached $67 billion in the period, an increase of11 percent compared to the same period a yearago. Total subscribers reached 280 million inSeptember and are likely to go past 300 millionby this year’s end.

China Netcom to switch from H.264 to AVSfor IPTV

China is conducting trials for IPTV in fivecities, of which one trial uses AVS, whereas theothers use H.264. Netcom said that it wouldchange over to AVS from H.264 after the codectrials finish.

This month, the Chinese government willbegin another round of tests for AVS, whichshould finish in January 2007. Netcom said thatit would favor equipment suppliers who agreeto upgrade its system with AVS free of cost inreturn for potential long-term contracts. Inaddition, Netcom plans to use AVS-based IPTVin 20 cities in 2007, and expects 6 million IPTVusers in five to seven years, or 40 percent of itspresent broadband users.

The technical performances of H.264 andAVS are believed to be almost the same.However, some chipmakers are skeptical.


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Unlike MPEG-4/H.254, AVS might not chargeparticipation fees for using codec in subscription-based services, title-by-title duplication ofcontent, or free over-the-air broadcasts.

China Mobile, China Netcom, and ChinaTelecom sign deals to purchase TD-SCDMAhandsets

China Mobile, China Telecom, and ChinaNetcom have reportedly signed deals with 15mobile-phone manufacturers to purchasearound 9,000 TD-SCDMA mobile phones. Itforms a part of a trial for the homegrown 3Gtechnology.

The sale price for the mobile phones is$315 per handset. Twelve of the 15manufacturers happen to be domestic firms,which include Levono, ZTE, Datang, LG,Samsung, and Motorola.

These three companies are intending togive orders for an additional 10,000 TD-SCDMAmobile phones next month.

Uganda to receive a grant of $120 millionfrom Huawei

Uganda will receive from China a grantof around $120 million for developing thenational information communication technology(ICT) backbone infrastructure.

On Chinese Prime Minister Jiabao’s visitto Uganda, an e-Government project MoU(Memorandum of Understanding) was signedwith Huawei Technologies, the biggest telecomequipment manufacturer in China. State Ministerfor ICT Mr. Allintuma Nsambu said that this grantwould help in providing fast telecom services atless costly rates.

The government intends to create a newICT backbone to trigger new economic growth,improve trade, and offer better communicationchoices to the Ugandans.

Huawei will do the job of installing,supplying, and putting the technologies in placeto set up an e-government system and extendthe communications network.

Hutchison Whampoa plans to launch X-series fixed-line broadband service

Hong Kong’s Hutchison Whampoa isplanning to launch fixed-line broadbandservices, called X-series in Britain, next month.

The service will include features likehome TV on mobiles, Web calling, instantmessaging, and more for a flat monthly fee.Pricing of the X-series will be similar to that offixed-line broadband.

It will be launched in eight other 3Gmarkets in early 2007.

Initially, it will be available on twohandsets: the Nokia N93 and the Sony EricssonW950.

The X-series will allow customers tomake unlimited calls over the Web using Skypesoftware through their mobiles.

The telecom conglomerate has signeddeals with various companies like Sling Media,Skype, Yahoo!, Google, Nokia, eBay, Orb,Microsoft’s MSN, and Sony Ericsson for theservice.

Huawei unveils commercial IMS VCCsolution

Huawei has launched a commercial IMS(IP Multimedia Subsystem) VCC (Voice CallContinuity) solution along with multinode smartdevice solution provider E28 to help operatorsenjoy the vast benefits of fixed-mobileconvergence.

This solution permits the users to switchbetween different types of networks and is 3GPPcompliant. Its intricate features allow dual-modeusers to roam between cellular GSM/CDMA/UTMS and Wi-Fi/WiMAX.

The director of Huawei’s IMS productline, Mr. Zha Jun, said that IMS was a significantinfrastructure for next-generation fixed andmobile convergent networks.

Huawei will provide all the networkequipment, including DTF and DSF of IMSdomain, IMS core, and related CAMELapplication logics (in CS domain).


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New World Mobile Holdings to sell its 23.6percent stake in mobile joint venture inTelstra

New World Mobile Holdings would beselling its 23.6 percent stake in a Hong Kong-based mobile-phone joint venture withAustralian-based Telstra to New WorldDevelopment, its parent firm. The Dow Jonesreport stated that New World Holdings plans tosell the stake for $321 million.

After selling its stake in CSL New WorldMobility Group, New World Mobile plans to paya dividend of $0.16 per share to its shareholders.The report also said that Simon Lo, a non-executive director of New World Mobile, hasconsented to buy New World Development’s58.04 percent stake in its mobile unit.

Hong Kong’s telecoms regulator OFTAgrants EFTNS license to Tricom Asia

Hong Kong-based telecom regulatorOFTA has granted an External FixedTelecommunications Network Services(EFTNS) license to Tricom Asia, enabling it tooperate telecom services through VN-HK, its1,050km undersea fiber-optic network, whichlinks Hong Kong and Vietnam. Since ChinaTelecom won a license in 2005, this is the loneEFTNS license in Hong Kong. Tricom Asia isplanning to invest in telecom solutions in theemerging markets in Asia-Pacific. It had formedits Hong Kong-based division in May 2003.

Beijing Quan Tong Chang to launch‘Intragroup Call’

Beijing Quan Tong Chang InformationServices (Beijing QTC) will soon be introducinga broadband phone service called the“Intragroup Call” in the Beijing Tianzhu AirportIndustrial Zone. The company expects to makea profit of $1.5 million every year. Tianzhu Zoneand Beijing QTC will work in partnership tolaunch this “Intragroup Call” promotion. Thecompany intends to install the broadband phoneplatform using the Internet, replacing regular

phone networks for transmitting calls. The firstinstallation will be done at the managementoffice building in Tianzhu Zone, Blue SkyMansion. Eventually it will be applied to big andmidsized enterprises.

Beijing QTC is also planning to buildbroadband phone networks with the largestcovering area in a period of eight months. Thecompany expects to increase its annual salesby about $1.5 million.

Intelsat renews China Central Televisioncontract for global programming distribution

Intelsat announced that China CentralTelevision (CCTV), the national broadcaster ofthe People’s Republic of China, renewed amultiyear contract for the global distribution ofits programming. CCTV is also utilizing Intelsatfor its international backhaul transmission of theAsian Games from Doha, Qatar, back to Beijing.

A long-standing customer since thelaunch of PAS-2 in 1994, CCTV became theworld’s first global Mandarin Chinese televisionservice when it expanded its servicesinternationally via the PAS-3 satellite in 1995.

Intelsat currently provides full-timeprogram distribution services for CCTV via itsPAS-1R Atlantic Ocean Region satellite, PAS-9Atlantic Ocean Region satellite, and PAS-10Indian Ocean Region satellite. Intelsat alsoprovides CCTV with capacity on its Galaxy 3Csatellite for direct-to-home (DTH) services in theUnited States. This renewal contract alsoexpands CCTV’s C- and Ku-band capacityagreement.

INDONESIA

Indonesia’s Telkom to take part in fiber-optictender valued at $1.5 billion

PT Telekomunikasi Indonesia (Telkom)will participate in the nation’s fiber-optic networkconstruction tender, which is being valued at$1.5 billion. It is likely to be launched in October2007. Telkom managing director Arwin Rasyid


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said that he was still looking out for the bestpossible options for Telkom to participate. Hesaid that one of the aims of the company wouldbe to enhance the capacity of its network andalso lend support to increasing demand for itssubsidiaries like Telkomsel and PT TelkomVision. Telkomsel would play a huge role in thebuilding the fiber-optic network.

Nokia and Indosat sign WCDMA 3G/HSPAmanaged services deal

Nokia and top Indonesia-based operatorIndosat have signed a WCDMA 3G/HSPAmanaged services contract to allow Indosat toenable wireless broadband services and 3Gservices.

Nokia would undertake the task ofoperating the network. Nokia will deliver Indosatturnkey services that include network planning,implementation, and integration of this WCDMA3G/HSPA network.

It will also build, operate, and transfer theInodsat 3G network. As part of the deal, Nokia’s3G device will also be provided. The networkwould be ready for launch by November 2006.Nokia, which currently has 65 WCDMA 3Gcustomers, would support the operators toimprove their services and reduce expenses. Itis also an important managed services player,with around 60 managed services contractsacross the world.

Bakrie chooses Redknee’s messaging andprepaid solution to power its TalkTimeservice

Bakrie Telecom has chosen RedkneeInc.’s messaging and prepaid voice solution forpowering its TalkTime service branded by Esia,SMS, and related marketing campaigns.Redknee said that Bakrie could offer advancedservices and attract new users, reduce churn,and increase revenues after engaging itssolution. Redknee’s solution claims to convergeall charging, billing, transaction, rating, andprovisioning for supported services like m-

commerce, data, voice, and messaging in onesystem in real time, thus decreasing CapEx andOpEx. Bakrie’s monthly rate of customer churnaverages 4 percent, as opposed to the industryaverage of 8 percent to 11 percent.

JAPAN

Softbank and News Corp. to bring MySpaceto Asia

Japanese firm Softbank and News Corp.plan to bring MySpace, the Internet socialnetworking site, to Asia. MySpace KK will be a50-50 joint venture. Each firm would invest $5.0million in the new firm. MySpace’s internationaloperations include Britain, France, Germany,Australia, and Ireland. Japan’s social networkingsites are believed to have over 10 million users.Softbank’s subsidiary Yahoo! Japan Corp.provides social networking sites, thoughSoftbank does not involve itself in theoperations. News Corp. acquired MySpacewhen it purchased Intermix Media Inc. for $580million in 2005.

Five years after its launch, W-CDMAbecomes leading technology in Japan

NTT DoCoMo launched W-CDMA inJapan in October 2001, and it was joined bySoftbank Mobile after 14 months. Now, fiveyears after W-CDMA was launched in thecountry, the standard has gone on to becomeJapan’s topmost technology, with subscribersreaching 34.75 million by the end of October2006. PDC, the technology that remained at thetop spot for 11 years (launched in September1995), claimed the second spot, with 34.49million users by the end of October. The CDMAstandard claimed the third spot, with 24.89million.

The mobile number portability (MNP)system was introduced in Japan by October, andthe monthly additions showed great success forKDDI, while DoCoMo was the greatest loser,losing 110 points of market share.


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DoCoMo selects Motorola and NEC for super3G network

Leading Japanese cell-phone operatorNTT DoCoMo has selected Motorola and NECfor supplying handsets for its “super 3Gnetwork.”

The network will be an upgrade to theoperators; current 3G infrastructure and wouldallow faster uploading and downloading of datalike videos and music clips.

Earlier this week, DoCoMo TechnologyPresident Kouta Kinoshita had said in a newsconference that the operator had chosenequipment vendors, without giving away thenames.

DoCoMo normally buys handsets fromdomestic suppliers like NEC and MatsushitaElectric Industrial, though it has included othervendors for the existing network, includingFinland-based Nokia. DoCoMo has spentaround $23.8 billion on its 3G network in thelast six years.

NEC reports higher loss in fiscal first halfNEC suffered higher losses during H1

2006 compared to H1 2005, due to a fall inmobile handset and PC sales and therestructuring costs for its chip operations. NECreported a group net loss of $62.7 million duringthe half-year ending September 30, comparedto the $12.7 million loss a year ago. Sales forthe fiscal half-year fell 2.5 percent to $18.6 billionfrom $19.5 billion. NEC expects a group netprofit of $152.5 million on $39.8 billion sales forthe fiscal year through March. NEC estimatesan operating loss of $424 million concerning itscell-phone business in the fiscal year till March.

NEC, Juniper to extend their NGNpartnership

Japan-based telecom equipmentmanufacturer NEC and US-based JuniperNetworks have expanded their current next-generation network (NGN) partnership to focuson developing IP multimedia subsystems (IMS)-

based fixed-mobile convergence (FMC)solutions. The pair will target the fixed, cellular,and wireless Internet access providers with theirIMS-FMC products.

The two firms have been cooperatingsince 2001; they recently worked on a projectto develop secure VoIP solutions aimed at theJapanese market based on NEC’s VoIPsolutions and the network-security platforms ofJupiter Networks. They launched two plans todevelop NGN solutions jointly this March.

Oki launches Iris Recognition Technologyfor Mobile Terminals in Japan

Oki Electric has developed IrisRecognition Technology for Mobile Terminals.Iris Recognition is an authentication technologythat uses the iris pattern in the eyes. It is basedon OKI’s original iris recognition algorithm thatuses standard optical cameras equipped inmobile terminals.

The new Iris Recognition Technologyuses a standard camera embedded in a mobileterminal. As new services like payments by cell-phone are becoming more common, users andmanufacturers have been emphasizing the needof personal authentication in such devices todisallow misuse when the terminals get stolen.OKI intends to make this product commerciallyavailable by March 2007.

Excite Japan and Media Lead sign contentdistribution agreement, will work with SmartSMS Corp. for fulfillment and distribution

Smart SMS Corp.; Excite Japan, one ofJapan’s largest portals with over 17 millionsubscribers in Japan alone; and Media LeadLLC, a mobile content publisher, have signedagreements to distribute content throughout theAsia-Pacific region.

For North America, Media Lead will workwith Smart SMS Corporation of Los Angeles fordistribution and fulfillment of its content, whichprovides the mobile fulfillment and marketing forthis market.


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KOREA

Pantech signs deal with Orange to supplyUTMS phones

South Korean handset vendor Pantechhas signed a key deal with France Telecom’sOrange to offer UTMS phones in France.Orange is the largest mobile service carrier inthe country and has a user base of 23 million.The U400 has a video telephony function witha 1.3-megapixel camera and a VGA camera; italso has a 1.9-inch 260,000-color TFT and 72polyphonic ringtones. Dennis Cheong, presidentof Pantech, Europe, said that this partnershipwith Orange proved the credibility of Pantech inproviding advanced mobile technologies.Pantech hopes to achieve its goal of becominga leading handset manufacturer in Europe.Celine Thomas, head of product marketing atOrange, echoed the sentiment. Pantech aimsto be among the top five cell-phone brands inFrance.

Hanaro agrees to acquire Onse broadbandsubs

South Korea-based broadband serviceprovider Hanaro Telecom (Hanaro) has signeda deal to acquire Internet customers from its rivalOnse Telecom.

Hanaro agrees to pay $265 to Onse foreach user who moves. Hanaro hopes to addalmost 140,000 broadband subscribers throughthis deal. Onse had 296,894 cable modembroadband users at the end of June 2006(market share of 2.3 percent); Hanaro had 3.6million broadband customers (28.2 percentmarket share) by the end of June 2006.Incorporated in July 1996, Onse entered thecountry’s ILD telephony market in October 1997.In August 2000, it launched its broadband ISP“Shinbiro sshark,” via its fiber-to-the-curb(FTTC) infrastructure. It applied for bankruptcyin April 2003. Onse was under control of theSuwon District Court till late September 2006,when Ubistar acquired it for $73 million.

Samsung unveils its latest mobile phone,SPH-900 Deluxe MITs

Samsung Electronics has exhibited itslatest cell-phone, the SPH-P9000 Deluxe MITs.The SPH-P9000 is a convergence tool that canprovide voice and multimedia datacommunications via Mobile WiMAX technology.The SPH-P9000 is a PDA-based device thatutilizes Mobile WiMAX and CDMA EV-DOconnectivity. Users can have wireless accessto the Internet through Mobile WiMAXconnectivity. This handset also supportsMicrosoft Windows XP OS. The 5-inch WVGAscreen is suitable for movie viewing, and the30GB hard drive can store music, movies, anddocuments. Kitae Lee, president of theTelecommunication Network Business atSamsung Electronics, said that the SPH-900 isjust one of the few Mobile WiMAX convergencedevices to be introduced globally. It will belaunched in Korea in H1 2007.

Samsung to launch new 1GB S-SIMSamsung will unveil a SIM card with a

1GB memory, called the S-SIM. The 1GB S-SIM uses a system-in-package (SiP) technologythat offers high-Gigabit-density NAND flashmemory, while the size of the SIM card remainsthe same. It supports MultiMediaCard and USBinterfaces to allow fast transfer of large datavolumes. Dr. Chil Hee Chung, senior vicepresident of the chip card and microcontrollerdevelopment team at Samsung Electronics, saidthat this high-performance S-SIM provedSamsung’s technological leadership to offer thebest technology for the IT and mobileenvironment. Samsung introduced the industry’sfirst Giga-level density card, 1GB S-SIM, lastJune after developing the 128-Megabyte S-SIMin 2004.

LG Telecom penalized with $5.5 million finefor illegal handset subsidies

The Korea Communications Commission(KCC) and Ministry of Information and


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Communications (MIC) has asked LG Telecom(LGT) to pay a fine of $5.5 million for issuingillegal handset subsidies.

Offering financial incentives to customerspursuing particular services along with a newmobile was considered illegal between June2000 and March 2006. MIC has booked threenational cellular operators for evading theseregulations on several occasions.

However, MIC eased these regulationsfrom March 27, 2006. LGT, KTF Corp., and SKTelecom could offer financial incentives up to$208 to users, confining them to an operatorfor over 18 months.

But carriers have to seek approval for therates. MIC fined these three operators for a totalof $11.5 million within a month of relaxing theprevious regulations, for issuing subsidiesbefore the new scheme was approved. Threeother operators, including Korea Telecom, werealso fined for a total of $76.3 million in June 2006for exceeding the subsidy rates.

Samsung claims to have developed thinnestLCD

Samsung Electronics apparently hasdeveloped the world’s thinnest LCD panel. Acredit card, at 0.82mm, is 0.07mm slimmer thanthe panel which was previously claimed as theworld’s slimmest panel.

The firm has also developed a newmobile technology, named “i-Lens,” thatintegrates the entire panel assembly into onemodule that is more shock-resistant and easierto read.

Samsung’s Mobile Display Teamreworked on the glass substrate and light guideplate subassembly to achieve a thinner module.In rolling out the firm’s i-Lens technology,manufacturers are able to trim 1.4mm to 2.4mmfrom the thickness of a cell-phone. It alsoprotects the cell-phone’s main display better andmakes it resistant to shock. This new LCDscreen would be available in 2.1-inch-diagonaland 2.2-inch-diagonal screen sizes.

Samsung to launch a new mobile TV phonein Italy

Samsung intends to launch a new mobileTV phone (SGH-P930) in the Italian market inDecember via Telecom Italia. This phonecombines the latest mobile TV technology withHSDPA technology for high-speed datatransmission. Samsung has provided a mobileTV phone (SGH-P920) to Telecom Italia sinceMay 2006. The P930 phone has a horizontalLCD screen for optimal mobile TV viewing andsupports stereo speakers. It also features amegapixel camera and a VGA camera for videotelephony. Samsung leads in all three standardsof the mobile TV market by providing the world’sfirst S-DMB and T-DMB phones in Korea,Europe’s first T-DBM in Germany and DVB-Hphone in Italy, and by demonstrating theMediaFlo mobile TV technology at CTIAWireless 2006 in the US.

Korea’s leading search engine and Internetportal increases network performance andreliability with Force10 TeraScale E-Series

Force10 Networks announced that NHN,Korea’s largest Internet company and theleading gaming site in Asia, is increasing theperformance and scalability of its network withthe TeraScale E-Series family of switch/routers.The high density and resiliency of the Force10TeraScale E-Series delivers the flexibility NHNrequires to build its high-performance networkand ensure seamless scalability for futuregrowth.

MALAYSIA

Malaysian firm to invest $100 million forfiber-optic cable

Telekom Malaysia Berhad (TM) plans toinvest $100 million in installing a 4,100km fiber-optic cable. The project will be completed bynext year. The company will spend around $100million on “Project Ittehad,” a project that willconnect 107 cities in Pakistan. The investment


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will be made via TM’s Pakistan-basedsubsidiary, Multinet Pvt Ltd.

TM Malaysia has various othersubsidiaries like Dialog Telekom Ltd. of SriLanka (89.8 percent), TM InternationalBangladesh (70 percent), Telekom MalaysiaInternational Cambodia (100 percent),Indonesian PT Excelcomindo (59.6 percent),and an important 49 percent stake in India’sSpice Telecom. TM has invested $1.3 billion incommunications business in Asia through itsinvestment unit, TMI. It has a regional user baseof 24 million.

Maxis to expand HSDPA services in MalaysiaMalaysia’s Maxis has expanded its

HSDPA footprint to serve above 20,000households in Penang.

The company has invested $1.4 millionto deploy HSDPA across Penang. Maxis isexpected to invest about $192 million to createits broadband services in the next three years.Maxis’s chief executive officer, Dato’ JamaludinIbrahim, said that the rollout of the services wasensuing upon the positive feedback receivedfrom the customers about the reliable andaffordable Maxis Broadband service, andexpressed confidence in the company’s product.

Telekom Malaysia’s net profit in third quarterreduces

Telekom Malaysia’s net profit fell 38percent year-on-year to $133 million in the thirdquarter of this year.

Third-quarter revenue increased 22.5percent year-on-year to $1.17 billion, mainly dueto robust performance by its Internet, mobile,and multimedia sectors.

For the first nine months to September,Telekom’s net profit fell to $397 million year-on-year from $440 million. Revenue increased 18percent year-on-year to $3.31 billion during thisperiod. The company’s cellular mobilesubscribers fell to 7.39 million in Q3, from 7.6million in Q2.

Maxis Telecommunications reports 28percent increase in third-quarter net profit

Malaysia’s top mobile-phone company interms of subscribers, Maxis Communications,has posted a 28 percent rise in net profit for thethird quarter. The firm’s net profit for the periodending September 30 rose year-on-year from$107.6 million to $140 million. The revenueincreased 25 percent to $547.2 million, as itsIndian Aircel unit contributed $68.6 million (12.5percent) to the group revenue. Domesticbusiness contributed 87 percent of the revenuefor Maxis. It added 388,000 local users in theperiod, reaching a total of 8.86 millionsubscribers, increasing from 8.47 million in Q2.

MALDIVES

Dhiraagu to connect Maldives to the worldvia an 837km submarine fiber-optic network

Dhiraagu is on its way to connect theMaldives with the whole world through an 837kmfiber-optic submarine cable. This submarinecable network project was given to Japan-basedNEC. This project is worth around $27 million.The connection between the Maldives and SriLanka forms the international link. The companyhopes that creating links via the submarine cablewould help Dhiraagu to improve the quality ofservice and reduce costs concerning satellitebandwidth. This submarine cable project wasinitiated through a partnership with Sri LankaTelecom (15 percent) and Dhiraagu (85percent). Dhiraagu laid its submarine cable onMay 1, 2006, after signing an MoU with SriLanka Telecom. Dhiraagu will be prepared tooffer services via this cable by early February2007.

MYANMAR

Private sector will also be able to providehigh-speed Internet services in Myanmar

Private firms in Myanmar are ready tooffer high-speed communication lines as per a


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cooperation program by Myanmar Post andTelecommunications (MPT), which will now beextended to include the private sector. MPT ispresently the only means of providing Internetservices in the country since Myanmar Teleportstopped delivering service lines in 2004. Theprivate firms that would provide ADSL servicesto the users include a consortium of ICT firms,Myanmar Info-tech and Global Technology, andMyanmar World Distribution. The latter twowould utilize the Thaicom-3 satellite to provideInternet services to remote parts of the country.The numbers of Internet subscribers haveincreased to 300,000 from only 12, four yearsago. Due to congestion of Internet lines,arrangements are being made to upgrade thecapacity to 45Mbps in the future.

NEW ZEALAND

Orcon to shift to super-fast DSLISP Orcon intends to migrate directly to

VDSL2, the high-data rate Digital SubscriberLine service, instead of going with ADSL2+.VDSL2 is “standardized” by the InternationalTelecommunications Union (ITU) and is anenhancement to the original VDSL. By using30MHz of bandwidth over twisted copper pairs,VDSL2 can offer around 100Mbps capacity inboth directions up to 500 meters from theDSLAM. At 1,000 meters, the speed reduces to50Mbps. VDSL2 offers the high bit rates neededfor multiple Internet television (IPTV) channelsper user. Outside of New Zealand, DeutscheTelekom and France Telecom plan to offerVDSL2 in 2007.

PHILIPPINES

Globe Telecom chooses OceanLake’smobile gateway platform

Philippines-based wireless-operatorGlobe Telecom has chosen OceanLake’s mobilegateway platform to provide mobile Internetaccess to its subscriber base of 14.5 million.

Toronto-based OceanLake and its partner,Datapax of the Philippines, have signed a dealwith Globe for using OceanLake’s MobileGateway dynamic reformatting engine. As perthe terms of this deal, Globe will share someportion of the earned revenues with OceanLakeand Datapax.

SINGAPORE

SingTel’s regional mobile subscriber baseexceeds 100 million

SingTel has said that due to its stronggrowth in India and Indonesia, its user base hasbeen pushed up to the 100 million mark. Withthe strongest growth rate coming from Bhartiand Telkomsel, SingTel saw its user basereaching 100.8 million by the end of September,a 36 percent increase year-on-year. SingTelclaims a 30.49 percent interest in Bharti and a35 percent stake in Telkomsel.

By the end of September, Bharti had 27.1million customers, a record 91 percent rise year-on-year, while Telkomsel reached 32.5 millionin the same period, an increase of 38 percent.SingTel had 1.7 million users at home by theend of September, a net gain of 81,000 in thequarter.

SingTel posts earnings of $612 million insecond quarter

SingTel’s second-quarter net profitincreased 18.6 percent year on year, mainly dueto good performance by its regional mobileassociates, according to a Dow Jones report.SingTel’s net profit for the period ending onSeptember 30 was $612 million, up from $516million a year ago. Analysts had forecast netprofit of $550 million and operating revenue of$2.1 billion. Its earnings from Asian mobile unitslike Telkomsel in Indonesia and Bharti in Indiaincreased by 37.4 percent to $326 million. ItsAustralian unit, Optus, which provides abovetwo-thirds of SingTel’s revenue, reported a 1.4percent increase in operating earnings before


13


interest, tax, depreciation, and amortization fromQ1.

PacNet suffers 43 percent reduction in third-quarter net profit

Singaporean firm Pacific Internet(PacNet) has suffered a 43 percent decline inyear-on-year net profit for Q3 ending onSeptember 30, 2006, down to $752,000, in spiteof a 17 percent jump in revenues to a record$49 million.

For the nine months ending onSeptember 30, PacNet’s net income droppedby 31 percent to $2.8 million. PacNet has had apretty rough year so far, including receiving anotice of requisition from MediaRing inSeptember. The PacNet board confirmed that itreceived requisition notices from Vantage Corp.and MediaRing. PacNet boasts of presence inIndia, Australia, Thailand, Singapore, HongKong, the Philippines, and Malaysia. PacNetwas incorporated on March 28, 1995, asSembawang Media; it changed to its presentname in 1998.

Etisalat, SingTel to provide IP-VPN servicesSingapore Telecommunications (SingTel)

and Etisalat will provide Internet Protocol VirtualPrivate Network (IP-VPN) to users in the MiddleEast and the UAE. SingTel will now be able toprovide seamless network connectivity and IPservices in the Middle East through Etisalat’sIP-VPN solutions. The EmiratesTelecommunications Corporation will have awider reach in Asia Pacific via the networkcoverage and ConnectPlus IP-VPN services ofSingTel. The firm’s ConnectPlus suite servesimportant business cities in Asia-Pacific andother areas. The global data services ofSingTel’s partners like Etisalat (in the UAE) willhelp in extended coverage. Etisalat providesservice to 5.3 million mobile users in the UAE,with penetration rate of 125 percent. SingTel has37 offices in 19 nations and territories in Europe,Asia-Pacific, and the US.

SingTel Mobile and M1 to compete in high-speed wireless broadband market

Singapore-based mobile operatorsMobileOne Asia (M1) and SingTel Mobile arecompeting fiercely in the mobile broadbandaccess market, as both have simultaneouslylaunched 3.5G high-speed downlink packetaccess (HSDPA) services. M1 is unveiling itsservices in early December. It aims to provide acountrywide wireless broadband service, andprovide new devices like the Wi-Fi-enabledVodafone 3G Router and the Vodafone MobileConnect USB Modem. Users in the CentralBusiness District area would get downlinktransmissions of around 3.6Mbps for $44.049per month, while the rest of the country will get1.8Mbps access.

SRI LANKA

Celltel to double number of base stationsSri Lanka’s second-biggest mobile

operator by subscribers, Celltel, will invest $70million to double the number of base stations inkey towns to 400 in the next six months. Celltelintroduced mobile services to the country in1989. It was the only cellco in Sri Lanka untilsome competition in 1993. The introduction ofGSM services by MTN Networks (DialogTelekom) in 1995 further challenged Celltel.Despite unveiling its own GSM network in 2000,Celltel’s market share fell to 17 percent by March2006. Celltel plans to increase its user base by50 percent to 1.5 million users by the end of2006.

Suntel to invest $33 million to expandnetwork

Fixed-line operator Suntel intends toinvest $33 million in 2007 to expand its network.Suntel has already spent around $20 million thisyear to provide CDMA-based services to remoteareas of Sri Lanka. The firm signed up for asyndicated loan worth $20 million to offset thisyear’s expansion-related costs. The firm also


14


plans to provide advanced data services withgreater bandwidth to its corporate users.Suntel’s net profit for the half-year to June 30fell by $0.85 million year-on-year to $2.6 million,though revenues almost doubled to $30 million,compared to $18 million a year ago. Suntel isthe biggest fixed-line competitor to SLT, and hada total user base of 188,000 in March 2006,overtaking its CDMA rival Lanka Bell, which hadaround 100,000 subscribers.

THAILAND

Ericsson gets $110 million AIS contractEricsson signed a contract worth $110

million with AIS to expand its current GSM/EDGE network in Bangkok. With this expansion,AIS will increase its network coverage as wellas its capacity. According to the contract,Ericsson will be responsible for building thenetwork; providing network design, deploymentand integration services; and radio and corenetwork. Ericsson will also supply its spare-partmanagement service, thus reducing AIS’soperational costs. The Mobile World subscriberdatabase reported that at the end of its Q3 2006,AIS had about 17.7 million customers, whichgave them nearly 50 percent market share.

NTC gives green light to phone-to-phoneInternet calling services

Thailand-based NationalTelecommunications Commission (NTC) hasfinally decided to allow ISP licensees to offerphone-to-phone VoIP call services by openingthe market to phone-to-phone Internet callingservices. Those ISPs without an Internet licensewill have to apply for one before providing theservices. NTC earlier allowed its Internet servicelicensees to provide VoIP calls only from PC toPC and from PC to mobile or fixed-linetelephone. The NTC, as per its interimnumbering plan, allocated a “06” prefix forproviding VoIP services from phone to phone.Current VoIP service providers of PC-to-PC and

PC-to-phone include True Internet, TT&T, andCAT Telecom. NTC is likely to unveil the officialnumbering plan next month.

CAT Telecom reduces proposedinterconnection rates due to competition

Thailand’s CAT Telecom has approvedincreased cuts in its proposed interconnectionrate by 35 percent to 85 percent to encouragemore telecom operators to make use of itsinternational networks. The new interconnectionrates would be submitted to the NationalTelecommunications Commission (NTC) inDecember. CAT Telecom had earlier proposedan interconnection rate of $0.029 per minute.The new interconnection rates are $0.019 perminute for origination and termination, areduction of 35 percent, and $0.004 for thetransit rate, a reduction of 85 percent. CAT’spresident, Phisal Jorpoocha-udom, said thatincreased competition forced the lower rates.

VIETNAM

Moscow’s Altimo to invest in VietnamMoscow’s Altimo plans to invest in

Vietnam and further expand to Southeast Asiain the future. According to Altimo’s senior vicepresident, Roger de Bazelaire, the company hasalready invested around $30 billion in emergingtelecom markets across the globe. Further, itplans to acquire minor stakes in local mobile-phone operators and provide technologicalexpertise to them. Altimo will be setting up anoffice in Vietnam in November.

AT&T signs deal with Vietnam-based carrierViettel

AT&T has signed a deal with Vietnam-based Viettel, a military-owned carrier, toconnect the country to the global AT&T network.It will allow multinational business in Vietnamto utilize the advanced network services viaViettel. The services would include VirtualPrivate Network (VPN) and frame relay; plans


15


are being made to launch more services in thenear future.

Hanoi Telecom and China Unicom sign MoUHanoi Telecommunications has signed

an MoU with China Unicom. As per the MoU,China Unicom would provide Hanoi Telecomwith wireless data cards, equipment, exchange

technologies, and value-added products. Thetwo firms will also launch roaming and otherservices. This deal is likely to result in increasedsales of CDMA mobile services in Vietnam.Previously, Hanoi Telecom and Hutchison hadreceived government approval to deploy CDMAservices. Hanoi’s HT Mobile (092) service willbe available soon.

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Vol. 10 No. 12 December 2006 - · PDF fileVol. 10 No. 12 December 2006 ... system, including Nokia NetAct Traffica, will support the network; Nokia will also provide network planning,